1. Find out your rate of return
Ask your adviser to calculate your rate of return for you. Keep in mind that any costs or fees you pay on your investments reduce your rate of return. So do any taxes you pay on the money you earn on investments outside a registered plan. Your adviser should take costs, fees and taxes into account when they calculate your return for you.
2. Assess your progress toward your goals
Take a look at:
- how much you have invested,
- the growth you wanted, and
- what your investment is worth today.
This should give you an idea of whether or not you're on track. If you’re not, you may choose to make changes to your investments.
3. Measure your results against other investments
You can compare your returns with those of similar investments in a benchmark index. For example, if you’ve invested in Canadian equities, you can compare your returns with the S&P/TSX Composite Index. If you’ve invested in Canadian fixed income investments, you can compare your returns with the DEX Universe Bond Index. If you have a mix of equities and fixed income investments, you might want to use a blended index as your benchmark. You may want to talk to an adviser if you’re not sure what index to use.
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca